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In a news conference Friday, President Obama said there were still things the parties could agree on about the automatic tax-rate increases and spending cuts at the end of the year. But he said parties would have to work together to get a plan approved in the next 10 days.

"Call me a hopeless optimist, but I actually still think we can get it done," he said, after meeting with Senate Democratic leader Harry Reid and speaking to Republican House Speaker John Boehner.

President Obama's nomination of Democrat John Kerry to be secretary of state sets off a chain of events that could put another Kennedy in the Senate, at least on an interim basis.

And it gives ousted Republican Scott Brown a fighting chance of returning to the Senate by midyear.

On Friday, Obama nominated Kerry, the senior senator from Massachusetts, to replace Hillary Clinton as the nation's chief diplomat. A 27-year veteran of the Senate and chairman of the Foreign Relations Committee, Kerry should win easy Senate confirmation early in the new year.

In the 1980s, Japan appeared to be a world beater — the China of its day. Japanese companies were on a tear, buying up firms in the U.S. and property around the world.

But these days, Japan is considered a cautionary tale for post-industrial economies around the world. The country is facing its fourth recession in what are commonly known as the "lost decades."

Japan's story resonates this holiday season as American politicians try to reach a debt deal.

A the U.S. wages a debate on its gun laws, some Australians are urging Americans to consider their experience.

For Australia, the turning point came on April 28, 1996, when a lone gunman opened fire with a semi-automatic rifle in Port Arthur, a popular tourist destination in the state of Tasmania.

Cathy Gordon was there that day, escorting six visiting musicians as part of her job with the Tasmanian Symphony Orchestra. They were leaving a cafe just as the shooter, Martin Bryant, pulled out an AR-15 assault rifle.